Equity Default Swaps

and They did it again Moved Your Money 

to a New Banking System Called 

Private Banks

By D'Anne Burley 

What is a Equity Default Swap? Well this is another part of Black Hole Economics where your money was moved into another false flag hedge fund game within over sea's markets whereby the high risk game of taking pools of your Homes and placing them into equity pools developed from your homes being sold within the secondary market. Here is the definition: 

By Vinod Kothari

Equity default swaps use the credit default swap technology, but not to transfer credit risk - they transfer the risk of major diminution in the market value of shares. Like in case of credit default swaps, equity default swaps have also been linked to notes and taken into the capital market in form of "credit linked notes" - you may also call them equity linked notes.

Another interesting dimension in the equity default swap (EDS) application has been that CDOs have included equity default swaps in their overall portfolio - along with credit default swaps, total rate of return swaps, etc.

The usual modality of an EDS is to choose a trigger event, similar to credit events - typically a decline of 30% or more in the equity price of the reference entity from the effective date. The terms of settlement may be either physical delivery or cash settlement. And cash settlement might have a binary payout or the actual difference in valuation. In case of binary settlement, the payout can be based on an assumed recovery of 50%. Thus, if the market value falls by 30% or more, the protection buyer is paid to the extent of 50% by the protection seller. Note that neither the decline of 30% is sacrosanct, nor the recovery rate - for instance, the Zest CDO noted below uses a 70% decline as the trigger point.

While the determination of credit events in credit derivatives is less transparent, the trigger event in EDS is market information-based, and hence, is more transparent.
EDS and CDS

How do equity default swaps relate to credit derivatives? Credit derivatives are contracts relating to the general credit of the reference entity. The typical reference obligation is unsecured loans or bonds - which are technically triggered only after the equity is fully lost. On the contrary, EDS are latched to a certain percentage loss in equity value - therefore, the trigger events in EDS will occur much sooner than the credit event in CDS. However, both relate to the general credit of a reference entity.
EDS and equity puts:

How are EDS different from equity puts? In essence, even a credit default swap is a put, so is an equity default put. The only distinction possibly is the steepness of the decline in equity prices and the recovered amount.
Where does it come from?

Quite obviously, the trend towards exotic credit derivative products stems from the urge of portfolio managers to pick up yields and to introduce more product diversification. 

Interestingly, rating agencies have rated CDOs which included equity default swaps.
EDS activity:

The first notable transaction of CDO incorporating EDS was Moody's-rated Odysseus deal arranged by JP Morgan, which consisted of a portfolio of 100 reference entities, with 10% of these being EDS.

In Japan, in February 2004, Daiwa Securities SMBC took the EDS concept a step further when it launched the first publicly rated arbitrage CDO 100% collateralized by EDS. Zest Investments V issued ¥31.5 billion of notes in five different classes, backed by EDS on a portfolio of 30 quoted blue-chip corporates with an aggregate notional amount of ¥45 billion. Payment to the protection buyer will be triggered if the share price of any of the companies referenced in the EDS portfolio falls by more than 70% from its initial price and if the share price fails to recover to the initial level by December 2008. 

-----------------------------------

Now you were under the belief that you got into that interest program just by error, which I am alleging that there was not mistake in this plan! You paid almost all of your mortgage payment into a Black Hole that they used to keep you out of ownership and also the payment of interest was used to develop more and more cash pools for them to play with in these markets of CDS CDO EDS and within an accrued interest casino game whereby they gambled your home until they are caught because there was nothing backing the risk! 

Is this criminal? well you go figure! if you did this would you be under investigation? But if you control law enforcement then you got the game under control. 

As I stated before in my other article they would move your loss into another Banking vehicle and for some reason on Monday the stock market went up after claiming that the failed  Wall Street markets would cause complete collapse of world Financial markets.

As they did in 1880's during the PIGGY BANK SCANDAL of the Savings and Loan Banks which were closed and collapsed under the same scams here we go again without your involvement they mover money into so-called Private Banks!

You got your home stolen, and they get away with the cash! I know that this is real because after reporting this I notice that the police in the area are involved in watching me and harassing those who know me, within Traffic Tickets and other ways so that no one will be around if they harm me, sending a message to me again to shut up or else. 

These creatures  are of habit and can be seen if you follow the money trail they leave behind. Not the money you such have, and or the  home you have whereby they create and more us like cattle from one level of debt to the next where they can continue to be Multi Zillionaires where we are just mere slaves creating more an more for those who are on the top. Can you complain yes! Will they investigate? Well since they control the policing agencies no one will do a thing about it! Your loss is there massive gain.

Now do you want Mccain in office? one of the Keating Five who knew about this scam as others did and all of them did nothing!  They are making they're other money prior to leaving the White House, within no regulations and safe guards to the public interest. No one will investigation and freeze foreclosures because they know that there are too many involved. 

Tax breaks will just make you think you are  getting something whereby all is just playing the "house" (You) against the middle!

So go to the polls and vote them in again and again! You need to do a full background check and then a lie detector test on these people  and oh don't forget see if they are high stake gamblers because the last pile of those in the White house seem to be just that!

Equity Default Swaps

and They did it again Moved Your Money 

to a New Banking System Called 

Private Banks

By D'Anne Burley 

What is a Equity Default Swap? Well this is another part of Black Hole Economics where your money was moved into another false flag hedge fund game within over sea's markets whereby the high risk game of taking pools of your Homes and placing them into equity pools developed from your homes being sold within the secondary market. Here is the definition: 

By Vinod Kothari

Equity default swaps use the credit default swap technology, but not to transfer credit risk - they transfer the risk of major diminution in the market value of shares. Like in case of credit default swaps, equity default swaps have also been linked to notes and taken into the capital market in form of "credit linked notes" - you may also call them equity linked notes.

Another interesting dimension in the equity default swap (EDS) application has been that CDOs have included equity default swaps in their overall portfolio - along with credit default swaps, total rate of return swaps, etc.

The usual modality of an EDS is to choose a trigger event, similar to credit events - typically a decline of 30% or more in the equity price of the reference entity from the effective date. The terms of settlement may be either physical delivery or cash settlement. And cash settlement might have a binary payout or the actual difference in valuation. In case of binary settlement, the payout can be based on an assumed recovery of 50%. Thus, if the market value falls by 30% or more, the protection buyer is paid to the extent of 50% by the protection seller. Note that neither the decline of 30% is sacrosanct, nor the recovery rate - for instance, the Zest CDO noted below uses a 70% decline as the trigger point.

While the determination of credit events in credit derivatives is less transparent, the trigger event in EDS is market information-based, and hence, is more transparent.
EDS and CDS

How do equity default swaps relate to credit derivatives? Credit derivatives are contracts relating to the general credit of the reference entity. The typical reference obligation is unsecured loans or bonds - which are technically triggered only after the equity is fully lost. On the contrary, EDS are latched to a certain percentage loss in equity value - therefore, the trigger events in EDS will occur much sooner than the credit event in CDS. However, both relate to the general credit of a reference entity.
EDS and equity puts:

How are EDS different from equity puts? In essence, even a credit default swap is a put, so is an equity default put. The only distinction possibly is the steepness of the decline in equity prices and the recovered amount.
Where does it come from?

Quite obviously, the trend towards exotic credit derivative products stems from the urge of portfolio managers to pick up yields and to introduce more product diversification. 

Interestingly, rating agencies have rated CDOs which included equity default swaps.
EDS activity:

The first notable transaction of CDO incorporating EDS was Moody's-rated Odysseus deal arranged by JP Morgan, which consisted of a portfolio of 100 reference entities, with 10% of these being EDS.

In Japan, in February 2004, Daiwa Securities SMBC took the EDS concept a step further when it launched the first publicly rated arbitrage CDO 100% collateralized by EDS. Zest Investments V issued ¥31.5 billion of notes in five different classes, backed by EDS on a portfolio of 30 quoted blue-chip corporates with an aggregate notional amount of ¥45 billion. Payment to the protection buyer will be triggered if the share price of any of the companies referenced in the EDS portfolio falls by more than 70% from its initial price and if the share price fails to recover to the initial level by December 2008. 

-----------------------------------

Now you were under the belief that you got into that interest program just by error, which I am alleging that there was not mistake in this plan! You paid almost all of your mortgage payment into a Black Hole that they used to keep you out of ownership and also the payment of interest was used to develop more and more cash pools for them to play with in these markets of CDS CDO EDS and within an accrued interest casino game whereby they gambled your home until they are caught because there was nothing backing the risk! 

Is this criminal? well you go figure! if you did this would you be under investigation? But if you control law enforcement then you got the game under control. 

As I stated before in my other article they would move your loss into another Banking vehicle and for some reason on Monday the stock market went up after claiming that the failed  Wall Street markets would cause complete collapse of world Financial markets.

As they did in 1880's during the PIGGY BANK SCANDAL of the Savings and Loan Banks which were closed and collapsed under the same scams here we go again without your involvement they mover money into so-called Private Banks!

You got your home stolen, and they get away with the cash! I know that this is real because after reporting this I notice that the police in the area are involved in watching me and harassing those who know me, within Traffic Tickets and other ways so that no one will be around if they harm me, sending a message to me again to shut up or else. 

These creatures  are of habit and can be seen if you follow the money trail they leave behind. Not the money you such have, and or the  home you have whereby they create and more us like cattle from one level of debt to the next where they can continue to be Multi Zillionaires where we are just mere slaves creating more an more for those who are on the top. Can you complain yes! Will they investigate? Well since they control the policing agencies no one will do a thing about it! Your loss is there massive gain.

Now do you want Mccain in office? one of the Keating Five who knew about this scam as others did and all of them did nothing!  They are making they're other money prior to leaving the White House, within no regulations and safe guards to the public interest. No one will investigation and freeze foreclosures because they know that there are too many involved. 

Tax breaks will just make you think you are  getting something whereby all is just playing the "house" (You) against the middle!

So go to the polls and vote them in again and again! You need to do a full background check and then a lie detector test on these people  and oh don't forget see if they are high stake gamblers because the last pile of those in the White house seem to be just that!